Accounting Standards Board
Decision Summary
July 20, 2016

This summary of Accounting Standards Board (AcSB) decisions has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussion on projects, which may change after further deliberations by the AcSB. Decisions to publish Handbook material are final only after a formal ballot process.


International Financial Reporting Standards

IFRS Discussion Group

The AcSB discussed the Group’s recommendations from its May 2016 meeting to consider whether to refer two issues to the IASB or IFRS Interpretations Committee.

The AcSB decided to refer the issue, identified by the Group during its update discussion on “IAS 16: Capitalization of Costs,” to the IFRS Interpretations Committee.

On the issue, “IAS 1:  Disclosures about an Assessment of Going Concern,” the AcSB reflected on how the IASB had decided in November 2013 not to develop proposals on disclosure requirements about an assessment of going concern.  Further, the AcSB observed that the International Auditing and Assurance Standards Board (IAASB) issued new auditor reporting standards, one of which includes a new requirement for the auditor to evaluate the adequacy of disclosures in “close call” situations. The AcSB noted that the Auditing and Assurance Standards Board is considering adopting the IAASB’s new auditor reporting standards as Canadian Auditing Standards.  Based on the deliberations in this area, the AcSB decided no further action is needed.   

IFRS Foundation’s Exposure Draft

The AcSB discussed points to be included in its response letter to the IFRS Foundation on its Exposure Draft, “Trustees’ Review of Structure and Effectiveness: Proposed Amendments to the IFRS Foundation Constitution.”  

The AcSB encourages stakeholders to share their views on the Exposure Draft with the IFRS Foundation by submitting comment letters to the IFRS Foundation by September 15, 2016.

Standards for Private Enterprises

2017 Annual Improvements

The AcSB considered the remaining issues for inclusion in the 2017 annual improvements process and decided that the proposals:

  • in Section 1506, Accounting Changes, would require the disclosure of the amount of an adjustment related to a change in accounting policy for the prior period(s) presented, and remove the requirement to disclose the adjustment related to the current period; and
  • in Section 1521, Balance Sheet, would clarify the presentation and disclosure requirements including that assets under capital lease should be presented separately.

The AcSB further decided not to include in the 2017 annual improvements clarification on how impairment losses should be allocated between long-lived assets and goodwill when an impairment loss is determined at the reporting unit level, as the issue is not within the scope of an annual improvement. The AcSB directed staff to conduct further analysis of the issue for consideration at a future meeting.

In addition, the AcSB decided to correct the duplication of the requirement to disclose the number of shares issued in Section 3240, Share Capital, as an editorial correction.

The AcSB discussed whether to remove Foreign Currency Translation, paragraph 1651.53, to permit the reversal of previously recorded write-downs of inventory consistent with the guidance in Section 3031, Inventories. The AcSB would like to better understand the concern before deciding on this issue and directed staff to conduct further analysis of the issue.

The AcSB expects to issue an exposure draft in the third quarter of 2016.


The AcSB was updated on the responses to its Discussion Paper, “Agriculture,” as well as the results of the roundtable discussions held to date with stakeholders. The AcSB discussed some of the key themes and complexities emerging from this feedback.  No decisions were made.

The AcSB encourages stakeholders in British Columbia, Saskatchewan and Quebec to register for one of the roundtables being held this fall.

Redeemable Preferred Shares

The AcSB continued its discussions relating to the viability of a classification exception and the conditions under which such an exception might be permitted.  In addition, the AcSB discussed when redeemable preferred shares falling within any exception should be reclassified from equity to liability subsequent to initial application of the classification exception and what information should be disclosed. The AcSB directed staff to begin field testing to assess whether the current control guidance in Section 1591, Subsidiaries, is sufficiently robust to address the various characteristics of tax planning arrangements and the additional conditions necessary in order to qualify for a classification exception.

Subsidiaries and Joint Arrangements

The AcSB was informed of two additional issues relating to the transition provisions raised by stakeholders. No decisions were made.  Rather, the AcSB will consider these issues when deliberating the comments received from the Exposure Draft, “Clarifications to Sections 1591 and 3056.”

Standards for Not-for-Profit Organizations

Accounting Standards Improvements

The AcSB considered the input from its Not-for-Profit Advisory Committee and decided that, in addition to proposals approved in March 2016, the exposure draft will include proposals that require a not-for-profit organization (NFPO) to:

  • recognize collections held by NFPOs on the statement of financial position at either cost or nominal value;
  • recognize write-downs to reflect a partial loss of service potential of a collection (i.e., the cost of the collection would be written down to its replacement cost or fair value);
  • choose whether to apply the proposals relating to collections retrospectively and use transition relief to measure the cost of collections in a practical manner; and
  • apply the proposals for write-downs of tangible and intangible assets prospectively.

The AcSB decided to ask stakeholders about the effects of applying the guidance in Section 3061, Property, Plant and Equipment, on componentization.

The AcSB also directed the staff to request the Committee and other stakeholders to conduct a fatal flaw review of the exposure draft prior to issuing it. In light of this additional review, the AcSB is examining when the exposure draft will be issued. 

Due Process

Canadian Securities Administrators

In a followup to the AcSB’s May 2016 discussion of the definition of a publicly accountable enterprise with chief accountants of the Canadian Securities Administrators (CSA) (see the AcSB’s May 2016 Decision Summary), the AcSB discussed the need to better understand the use of exempt and private market by enterprises to raise capital. In this regard, the AcSB agreed to develop a list of questions to ask the CSA.

Note: All of the AcSB’s responses to documents for comment issued by the IASB and the IFRS Interpretations Committee are available on the IASB’s website at